Dell Goes Up, TXU Goes Down, a Rollercoaster Week for PE

That’s how the private-equity world might be feeling after this week. The industry reached its biggest deal in five years and saw the biggest buyout of all time take another step closer to collapse.

Thursday WSJ colleagues reported that the company once known as TXU Corp. has hired restructuring advisers to help handle its $40 billion in debt.

Private-equity firms KKR, TPG and others purchased TXU in a $45 billion deal at the top of the market in 2007 in a transaction many in restructuring circles considered the epitome of overleveraged buyouts. The company, now known as Energy Future Holdings Corp., currently owes total debts worth ten times its earnings before interest, taxes, depreciation and amortization.

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